Vladimír Urbánek (Kurzy.cz)
Macroeconomics  |  November 05, 2012 10:57:05

Retail in September under the sign buying clothes, saving on food


Retail results for September again disappointed and give so clear that this year will be good again. The last six months except July sales drop in September, and the result confirmed it. Sales in the entire retail trade fell by 3.3% and it is one of the worst results of the year. An important factor was the smaller number of working days, which was mainly influenced by the sale of cars. After cleaning, sales rose a slight two tenths percent. The decrease in sales but went across the entire retail market.

The grim report is influenced by a number of factors. One of them is the general reluctance of shoppers to spend for any consumer goods.The heads have a constant sense of rising prices and limited family budgets, and therefore their purchases think mainly on price and how to reduce it. This translates to basic shopping, especially for food. Here sales in September fell by 5.9%. Its share of the blame for bear their prices in September rose year on year by 7.3%.

Results underscore the plight of car sales, which fell by 3.4%. Partly to replicate European trend in the current crisis the demand for cars in Europe decreases significantly. For manufacturers who have their factories mainly in Western Europe, for example in Sicily Fiat or Ford in Belgium, this means deciding on their possible closure.

While people are still saving for a meal, they are more willing to spend on clothes and shoes. Here sales are growing without a break for a year and this year's average of 6.1% growth. This underlines the result for September, when sales grew by 11.6%. Consumers love to collect mainly in shopping discounts and promotions selloff that can attract attention. Shops but so often get into a vicious circle, where no discounts and sales are not attractive to customers.

Ing. Michal Kozub
Analyst
Home Credit as

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